The Virgin Group is aiming to establish an international operation from Australia in the next nine months, with low-cost Australian domestic carrier Virgin Blue looking increasingly unlikely to be the vehicle for the group's expansion in the Asia-Pacific region.
Sir Richard Branson said late last year that the group was eyeing opportunities in the region, including China, India and across the Pacific and that expansion would most likely be through Virgin Blue. Speaking in Sydney last week, Branson said that the international operation would probably target the USA, China and Japan markets.
The Sydney-Los Angeles route, which is dominated by Qantas and to which Virgin Atlantic part owner Singapore Airlines is trying to gain access, is one of Branson's major targets.
"My guess is that [the international operation] will be likely to be separate from Virgin Blue," Branson said. Any Australia-based carrier would need to be 51% locally owned.
Virgin's plans come as Australian logistics group Patrick Corporation has secured 62% of Virgin Blue through its takeover bid. Virgin Group's stake in the carrier is 25.6%. Patrick chief executive Chris Corrigan last week told Virgin Blue staff that there would be no major changes in the low-cost carrier's direction, but there will be a "fine-tuning" of the product. In the past Corrigan is believed to have not been fully committed to international expansion by the carrier.
EMMA KELLY/PERTH
Source: Flight International
